### Beware of Risky Altcoins: Protect Your Investments
Did you know that 98% of altcoins are unlikely to grow? For instance, investing $10,000 in $AXS in November 2021 would now leave you with just $382.5. Here’s a guide to help you avoid risky tokens and make more informed investment decisions.
#### Key Factors to Analyze Before Investing:
- **Market Cap (MC)**
- **Fully Diluted Valuation (FDV)**
- **Future Unlocks**
- **Token Demand**
- **Sector (Narrative)**
Understanding these factors can help you identify promising tokens and avoid potential financial losses.
#### Types of Altcoins to Avoid:
1. **Outdated and Overvalued Projects**: These often lack substantial technology and tend to lose value over time.
2. **Projects Tied to Past Narratives**: Tokens with high FDV, low market cap, and constant selling pressure are usually poor investments.
3. **Tokens with Artificially Inflated Prices**: Controlled by teams or venture capitalists, these tokens often have manipulated valuations.
#### Top 8 Risky Tokens to Avoid:
1. **XMR (Monero)**: Known for its anonymity, but it has been stagnant since 2022 and faces potential bans.
2. **FLOW**: Once promising for Web3 and NFTs, but interest has diminished.
3. **XRP (Ripple)**: Overhyped and considered an unnecessary fork of Bitcoin with an inflated valuation.
4. **ADA (Cardano)**: Despite a loyal community, it lacks substantial progress.
5. **AXS (Axie Infinity)**: The excitement around play-to-earn tokens has diminished.
6. **DYDX**: Constant selling pressure due to token unlocks has negatively impacted it.
7. **WLD (Worldcoin)**: Controlled supply and insider selling make it risky.
8. **BCH (Bitcoin Cash)**: Essentially a redundant fork of Bitcoin.
To protect your investments, learn to distinguish between less promising and potential successful tokens. Avoid these tokens that seem destined for failure. Remember, this is just my personal opinion, so always conduct your own research.